The Cost Of The Foxconn iPad Plant Explosion: Human And Commercial



Investigations have been launched into the cause of the explosion and fire at the huge Foxconn plant at Chengdu in China which claimed the lives of two people and injured 16 others.

Foxconn is Apple's largest product supplier and the blast is said to have happened on an iPad 2 finishing and polishing line.  Both companies have promised a full inquiry.
Apple: “We are deeply saddened by the tragedy at Foxconn’s plant in Chengdu, and our hearts go out to the victims and their families. We are working closely with Foxconn to understand what caused this terrible event.”
There are already reports that the damage could result in supply shortages for the sell-out iPad 2. Customer shipping times for the device have been cut recently from 4-5 weeks to 1-2 weeks, but it's feared the waiting times may rise again.

It's also been claimed it could delay the launch of the next iPhone, expected in September.

Neither of these reports has been confirmed.

The cause of the explosion is still a mystery. There was one report which said the plant was hit by a lightening strike - again this is unconfirmed.

The China Financial Daily newspaper is reporting the cause could be an accumulation of dust in the iPad polishing facility. In certain circumstances, dust in the air can spark a spontaneous explosion, for example in grain silos and coal mines.

If this is proved to be the cause it could have serious implications for Foxconn, which has already come in for severe criticism over working conditions and long working hours.
Inquiries were held after at least 13 workers committed suicide last year at its mainland China factories.

Foxconn doesn't only assemble electrical goods for Apple:  its other customers include Nokia, Sony and Amazon.  It's known as highly secretive and has plants scattered around the world with 12 in China and others in Brazil, Mexico, Slovakia and Poland.

Brands such as Apple like the secrecy.  They can plan and produce goods in the knowledge that design details will probably be safe until launch.

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